Pages

Tuesday, 31 January 2012

The Central Statistics Office January 31 lowered the gross domestic product (GDP) growth estimate for 2010-11 to 8.4 per cent from an earlier estimated level of 8.5 per cent.

The downward revision came in the quick estimates of national income, consumption expenditure, saving and capital formation for 2010-11 released by Mr Srikant Jena, Minister of State (Independent charge) for Statistics and Programme implementation.

He said that these detailed estimates have been prepared based on the latest available data on agricultural production, industrial production, Government expenditure and also detailed data available from other source agencies.

The GDP at factor cost at constant prices in 2010-11 has registered a growth of 8.4 per cent over the previous year. The Gross National Income has registered a growth of 7.9 per cent over the previous year. The major source of growth in the GDP has been from the services sector which has grown at the rate of 9.3 per cent. The agriculture sector growth has also been impressive at 7 per cent.

The growth of the secondary sector which includes manufacturing and construction sector was 7.2 per cent. The GDP at constant prices at market prices has grown at 9.6 per cent.

The gross domestic savings at current prices in 2010-11 has been estimated at Rs 24.81 lakh crore which constituted 32.3 per cent of GDP at market prices. The savings rate in 2010-11 has declined from 2009-10.

Major reason for the decline is due to decrease in the rates of financial savings of household sector from 12.9 per cent to 10 per cent and the private corporate sector from 8.2 per cent to 7.9 per cent. The rate of savings of public sector has increased from 0.2 per cent to 1.7 per cent in 2010-11.

The Gross Domestic Capital Formation at current prices has increased from Rs 23.64 lakh crore to Rs 26.92 lakh crore in 2010-11. The rate of capital formation at current prices was 35.1 per cent in 2010-11 against 36.6 per cent during 2009-10.

Reflecting growing prosperity, India’s per capita income grew by 15.6 per cent to Rs 53,331 per annum in 2010-11, crossing the half-a-lakh rupees mark for the first time, according to government data.

“The per capita income at current prices is estimated at Rs 53,331 in 2010—11, as against Rs 46,117 for the previous year, depicting a growth of 15.6 per cent,” said the Quick Estimates of National Income released by the Central Statistical Office (CSO).

The growth in per capita income comes on the back of 8.4 per cent expansion of the Indian economy during the last fiscal.

Per capita income is the earnings of each Indian if the national income is evenly divided among the country’s population of around 120 crore. It is an important indicator of overall prosperity in the country.

However, the increase in per capita income at constant (2004—05) prices, after discounting for inflation, was at 6.4 per cent in 2010—11. It was Rs 35,993 in 2010—11, as against Rs 33,843 in the previous year.

According to the figures, the size of the economy at current prices rose to Rs 71,57,412 crore last fiscal, up 17.5 per cent from Rs 60,91,485 crore in 2009—10.

Based on 2004-05 prices, the Indian economy expanded by 8.4 per cent during the fiscal ended March, 2011.

The GDP at constant (2004—05) prices in 2010—11 has been estimated at Rs 48,85,954 crore, as against Rs 45,07,637 crore in 2009—10, as per the Quick Estimates.

The rate of growth in the 2009—10 fiscal stood at 8.4 per cent, as per provisional estimates which were also released January 31.

11. As per newspaper reports, India's trade gap has been showing a negative growth for the last few months. "Trade Gap" means what?

a) Gap between total GDP and total consumption
b) Gap between total imports and total exports
c) Gap between available liquidity and expected demand in next five months
d) Gap between budgeted revenue collection and actual collection of the same
e) None of these

12. 'Equity schemes managed strong NAV gains, which, boost their assets' was a news in some financial newspapers. What is the full form of the term NAVas used in above head lines?

13. As per reports published in various newspapers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 per cent

a) in their total investments they made collectively during the year
b) more than their profits during previous year
c) of the total capital of the company
d) less than the total expenditure of the companies
e) None of these

14. As per the reports published in some major news papers "ADAG companies" made good profits during the year. ADAG companies are popularly known as

15. "Mutual Funds reported exceptional performance in 2009-10" was the news in major financial news papers recently. What is a mutual fund?

A. A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments.

B. It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry, ie housing or insurance etc. The money raised thus cannot be invested anywhere else.

C. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants etc, the common pool is known as Mutual Fund.

a) Only A
b) Only B
c) Only C
d) All A, B & C
e) None of these

16. We very frequently read about Europe's sovereign debt crisis these days. Which of the following statements/is/are true about the same?

A. In early 2010 the Euro crisis developed in some countries like Greece, Spain and Portugal.

B. This created a credit default swap between the countries of the European Union ..

C. SAARC countries have offered some assistance to some of the severely affected countries like Portugal, Spain and Greece.

a) Only A
b) Only B
c) OnlyA & B
d) All A, B & C
e) None of these

17. As per the announcement made by the RBI, some Stock Exchanges in India are allowed to introduce Plain Vanilla Currency Options. The term Plain Vanilla Currency Options is associated with which of the following activities/operations?

a) Dollar-Rupee Exchange Rate
b) Floating of Commercial Papers
c) Launch of new mutual funds
d) Deciding the opening price of a share on a particular" business day
e) None of these

18. The process of "Artificial Application of Water to the soil usually for assisting in growing crops" is technically known as

41. As per the to Commerce Ministry data released on 2 January 2012, India’s exports recorded their slowest pace of growth in two years in November 2011. What was the per centage of growth recorded?

a) 4.2%
b) 3.8%
c) 2.2%
d) 0.94%

42. The capital market regulator SEBI on 3 January 2012 allowed auctioning of securities through stock exchanges and introduced a new method for institutional placement of stocks. Which of the following facts related to the above statement is/are not true?

1. Under the institutional placement programme (IPP), shares can be sold only to qualified institutional buyers.

2. There shall be at least 25 allottees in every IPP issuance. No single investor shall receive allotment for more than 25% of the offer size

3. The IPP method can be used to increase public holding by 10% and could be offered to only qualified institutional buyers with 25% being reserved for mutual funds and insurance companies

4. Under the IPP, companies will have to announce the ratio of buy-back, as is done in the case of rights issues and fix a record date for determination of entitlements as per shareholding on record date

a) Only 1
b) Only 3
c) Only 2
d) Only 4

43. What is the Finace Ministry’s decision on the rates applicable on small savings instruments schemes that would be announced on April 1 each year?

a) rate would remain valid till the maturity of the scheme
b) rate would change in the first qurter of that respective year
c) rates would change depending on different maturity period
d) rates would remainvalid for six months post the maturity

44. Scientists discovered unknown species off the coast of Antarctica. Consider the following statements: i) The temperature in this region rises to 380 degree Celsius. Ii) There is plenty of light in this region.

Which of the above statements is/ are correct?

a) Only i
b) Only ii
c) Both i and ii
d) Neither i nor ii

45. Scientists produced artificial human semen to help infertile men. Consider the following statements:

i) The scientists grew the sperm by enveloping the germ cells in a special compound called agar jelly.

ii) The artificial human semen could help infertile men father their own children.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

(2) he got attracted to the post-1947 theatre and joined Theatre Unit, the theatre group-cum-school founded by Ebrahim Alkazi

(3) Dubey came into prominence with Dharamvir Bharati’s radio-play Andha Yug that brought to the fore the pervasive criminal and homicidal tendencies during the times of war.

(4) He penned screenplays/dialogue of some acclaimed films in the 1970s, including Shyam Benegal's Nishant, Ankur, Kalyug and Bhumika

(5) He won the Filmfare Award for Best Dialogue in 1980 for the film Ankur

a) Only 1
b) Only 4
c) 2 & 3
d) Only 2

52. Lok Sabha on 27 December 2011 passed the Lokpal and Lokayukta bill, 2011. Consider the following statements:

i) The setting up of Lokayuktas by the states would not be mandatory.

ii) The constitutional amendment bill fell through.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

53.

(1) Reserve Bank of India deregulated non-resident external (NRE) deposits on 16 December 2011 allowing banks to offer higher interest rates to dollar-denominated accounts. Which of the following facts related to the above statement is/are not true?

(2) Reserve Bank freed the rates on non-resident external accounts, offering interest as high as 9.6% per annum

(3) Following RBI’s deregulation five Indian banks, including HDFC Bank and Yes Bank on 23 December 2011 raised their interest rates on such deposits in order to lure foreign money

(4) Private lender Yes Bank increased the interest rates on fixed deposits held by non-resident Indians (NRIs) to 8.4 per cent from 3.82 per cent

(5) The new rates are effective from 24 December for fresh deposits as well as those being renewed on maturity.

a) 1 & 2
b) Only4
c) Only 3
d) 1 & 4

54. According to the RBI data, India's foreign exchange reserves fell by what amount to $302.1 billion during the week ended 16 December 2011 on account of a fall in foreign currency assets?

a) $4.67 billion
b) $3.33 billion
c) $5 billion
d) $5.75 billion

55. Telecom Commission, the decision-making body of the Department of Telecommunications recommended a uniform licence fee of what per cent of adjusted gross revenues (AGR) as against the prevalent rate of 6-8 per cent?

57. Scientists at the Salk Institute for Biological Studies report discovered a missing link between the body’s biological clock and sugar metabolism system. Consider the following statements
i) Sugar Metabolism is a process by which the body uses sugar for energy.

ii) If the human body produces too little insulin, the amount of sugar in the blood increases abnormally, a condition known as hyperglycemia. Choose the right option:

a) Both i and ii are correct.
b) Neither i nor ii is correct.
c) Only i is correct.
d) Only ii is correct.

58. Name the gene found by the neuroscientists, which could help in creating and altering memory.

a) Mpas 4
b) Npas 4
c) Npas 3
d) Mpas 2

59. Name the Rashtriya Lok Dal (RLD) leader who was inducted into the Union Cabinet as civil aviation minister on 18 December 2011.

60. Popularly known as Adam Gondvi, this Hindi poet who wrote revolutionary poetry focusing on the pathetic state of dalits and the poor breathed his last in Lucknow on 18 December 2011. Name the poet.

61. The Union cabinet of India on 22 December 2011 approved __ percent share for minorities within the 27% OBC quota in jobs and university seats.

a) 4.5
b) 5.6
c) 3.4
d) 5

62. The Manipur Legislative Assembly passed the Manipur Lokayukta Bill, 2011. Manipur will be the __state in North-Eastern India to have alegislation of Lokayukta.

a) Second
b) Third
c) First
d) Fourth

63.

(1) Former Czech president Vaclav Havel who had been suffering from chronic respiratory problems died on 18 December 2011. Which of the following facts mentioned about him is/are not true?

(2) He was the tenth and last president of Czechoslovakia (1989–92) and the second President of the Czech Republic (1993–2003)

(3) He played a seminal role in the Velvet Revolution that ended four decades of repression by a regime which Havel ridiculed as Absurdistan.

(4) He co-authored the human rights manifesto Charter 77, which drew wide attention in the West.

(5) As president, he oversaw the country's transition to democracy and a free-market economy and also the peaceful 1993 breakup into the Czech Republic and Slovakia.

a) Only 3
b) Only 1
c) 1 & 4
d) Only 4

64. The enigmatic leader of North Korea Kim who led his nation for 17 years through a devastating famine while frustrating the United States and other global powers with approach to talks on giving up nuclear arms in return for food and other assistanceon died on 17 December 2011 after he suffered a massive heart attack. Name the leader

a) Kim Jong-il
b) Kim Il-sung
c) Kim Jong-un
d) Kim Jong-chul

65. Which Controversial film based on the 116-year-old Mullaperiyar dam and directed by Sohan Roy made it to a shortlist for the Oscars under the Best Picture category?

a) Rio and The Muppets
b) Undefeated
c) Project Nim
d) Dam 999

66. India and Australia on 16 December 2011 signed an agreement to amend DTAA (Double Taxation Avoidance Agreement). DTAA was signed between India and Australia in__.

a) 1990
b) 1991
c) 1992
d) 1995

67. The Indian women's hockey team defeated Ireland 4-1 win to clinch the bronze medal in the four-nation tournament held in Parana, Argentina in December 2011. Which team won the gold medal?

a) South Africa
b) USA
c) Argentina
d) Pakistan

68. Who defeated ace badminton player and World No. 4 Saina Nehwal of India in the women’s singles final of the $500000 BWF World Super Series badminton championship in China on 18 December 2011?

a) Zhang Ning
b) Xie Xingfang
c) Xu Huaiwen
d) Wang Yihan

69. Which India striker was on 20 December 2011 voted Player of the Year by the All India Football Federation?

a) Sunil Chhetri
b) Savio Medeira
c) Kyrshan Lyngshing
d) Babu Mani

70. Diesel consumption in Delhi declined by a startling 26% in 2010-11 compared to 2009-10. Delhi was however found to have used 2.24% more petrol in the same period. As per the latest Delhi government figures, the consumption of diesel in the city stood at what amount in 2010-2011?

71. Fears of continuing economic slowdown, lack of decision making at the centre, rising fiscal deficit combined with not-so-impressive revenue collections upset Dalal Street investors on 20 December 2011. Which of the foolowing facts related to the above statement is/are not true?

1. Fears of continuing economic slowdown, lack of decision making at the centre, rising fiscal deficit combined with not-so-impressive revenue collections led to a 204 points loss in sensex that ended at 15175

2. The slide on 20 December 2011 was triggered by FII selling which recorded a net outflow of Rs 600 crore, taking the month’s total net outflow to about Rs 1700 crore.

3. The combined effect of the market’s slide and the depreciation of the rupee forced India to exit from the select group of countries with a $1 trillion market capitalization

4. There was not even a single ADR issue in 2011. However, companies raised about $220 million through GDRs (Global Depository Receipts) during 2011

a) Only 1
b) 3 & 4
c) Only 3
d) Only 2

72. Credit rating agency Moody's on 21 December 2011 upgraded the credit rating of the Indian government's bonds from the speculative to investment grade. Which of the following facts related to the above statement is/are true?

1. According to a release issued by the Finance Ministry, Moody's unified India's local and foreign currency bond ratings at Baa3

2. Moody's Investor Service upgraded its local currency rating for Indian government bonds to Baa3 which is speculative grade as compared to the earlier Ba1 which is junk or investment grade.

3. India's foreign currency bond ceiling is unchanged at Baa2, and the foreign currency bank deposit ceiling is Baa3. The local currency bond and bank deposit ceilings are unified at A1.

4. The government's local currency short-term rating has been changed to P-3 from NP, indicating the government's ability to repay short-term debts.

a) Only 2
b) Only 1
c) 1 & 3
d) Only 4

73. According to official data released here on 22 December 2011, food inflation dropped sharply to an almost four-year low of what per cent during the week ended 10 December indicating an overall easing of prices?

a) 1.5%
b) 1.32%
c) 1.81 %
d) 2.32%

74. Which of India's leading commodity bourses on 20 December 2011 became the world's fifth-largest commodity futures exchange?

75. Ravi Ruia decided on 21 December 2011 to step down as chairman of which of the following London-listed after a trial court admitted a criminal chargesheet filed by the investigating agency, CBI?

a) Essar Energy
b) Essar Shipping
c) Essar Oil
d) Eaasr Technologies

76. Which company won the award for Alternative Thinking and Driving Positive Change in the Fleet Owner category at the Mahindra Navistar Transport Excellence Awards 2011 at Hotel Ashok here on 20 December 2011?

a) Tata Motors
b) Hero Group
c) Edu Comp
d) Agarwal Packers & Movers

77. Which PSU lender decided to aggressively market its gold loan scheme for farmers to prevent defaults after the agriculture sector witnessed a sharp spike in bad debt in the past one year?

a) Union Bank
b) United Bank of India
c) Industrial Development Bank of India
d) State Bank of India

78. Who did the Central Government appoint as Chairman and Managing Director (CMD) of Andhra Bank?

79. The directorate general of hydrocarbons (DGH), the technical arm of the oil ministry approved which company’s proposal to commence production from Bhagyam, the second-largest oil field in the Rajasthan block?

a) Essar Oil
b) ONGC
c) Cairn India
d) Indian Oil

80. Scientists discovered that the protein__ is responsible for regulating fatty acid oxidation in the liver and is critical for metabolism.

a) CPT1
b) CTP1
c) CTT1
d) CPT2

81. British Scientists recently developed a technology to produce pocket TV. Consider the following statements:

i) Scientists developed a new form of light-emitting crystals, known as quantum dots.

ii) These tiny crystals are 100000 times smaller than the width of human hair.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

82. Scientists developed a hydrogel that regenerate healthy and scar-free tissue on skin damaged by severe burns. Consider the following statements:

i) The hydrogel helps in formatting of new blood vessels and skin including hair follicles.

ii) The injured soldiers, fire victims and people with third degree burns can avail of the gel.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

83. The Sangita Kalanidhi M.S. Subbulakshmi Award was presented to whom at the inauguration of the 85th annual conference of the Music Academy in Chennai on 15 December 2011?

84. The 40th anniversary of vijay diwas was celebrated on which day marking the finest hour of the Indian armed forces when they defeated Pakistan, leading to the creation of Bangladesh in 1971?
a) 12 December
b) 15 December
c) 16 December
d) 18 December

85. The Himachal Pradesh Cabinet on 15 December 2011 approved amendment to the state industrial policy. Consider the following statements:

i) The amended industrial policy seeks to promote environmentally sustainable development in the state and encourage cleaner production and adoption.

ii) Under this policy, disincentive industries will be put on negative list.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

86. The Supreme Court of India directed Tamil Nadu to ensure that the water level in the Mullaperiyar dam does not exceed __but declined to entertain Kerala’s plea for reducing the level to__.

87. A parliamentary committee on 13 December 2011 rejected the proposal to allow what percentage foreign direct investment in the insurance sector?

a) 51%
b) 49%
c) 43%
d) 29%

88. According to data from research body All India Organisation of Chemists and Druggists (AIOCD), Indian drugmakers posted a certain per cent month-on-month growth in sales of November 2011 which was the highest in the past 14 months. What was the per cent of sales growth projected for the month?

a) 23%
b) 31%
c) 21%
d) 43%

89. The government waived loan of handloom weavers in India to help revive the sector under the scheme of Revival, Reform and Restructuring Package for Handloom Sector. What amount of loan was waived?

90. A committee on mutual funds, constituted by SEBI in december 2011 recommended to the regulator’s board to break down the bifurcation within the fee structure known as expense ratio. Which of the following facts are not true with regard to the above statement?

1. Currently mutual funds are allowed to charge up to 2.25% as expense ratio. fund houses are allowed to accept only 1.25% as asset management charges

2. Funds with large corpuses currently charge 1.55% as expenses charges

3. SEBI was suggested to keep overall scheme expenses unchanged at 2.25% for schemes with assets under management not exceeding Rs 400 crore

4. Expense ratio is more than important in debt schemes where the rate of return is not hig.

a) 1 & 2
b) 3 & 4
c) 1 & 3
d) Only 2
e) None of the above

91. Which player became the first player to win the Orders of Merit on both sides of the Atlantic on 11 December 2011 when he shot a closing 66 to finish third in the Dubai World Championship?

a) Luke Donald
b) Alvaro Quiros
c) Rory McIlroy
d) Paul Lawrie

92. Which country defeated Spain 1-0 to win for the 4th time hockey’s Champions Trophy title on 11 December 2011?

a) Pakistan
b) New Zealand
c) Australia
d) Greece

93. Name the woman squash player who on 10 December 2011 annexed the elusive women’s title while in the Senior National Squash Championship in Chennai.

(1) The Centre for Development of Telematics (C-DoT) on 5 December 2011 transferred indigenously-developed Gigabit Passive Optical Network (GPON) technology to seven telecom equipment manufacturers. Which of the following facts about the technology is not true?

(2) The GPON technology is a pivotal component required for broadband connectivity over optical fibre.

(3) C-DOT indigenously designed and developed GPON technology, which can be used to provide triple play (voice, video and data) through fibre-based networks

(4) The GPON technology was tested, validated, field-evaluated and made operational in MTNL's/VSNL’s network in Ajmer (Rajasthan)

(5) The technology will help fulfil requirements of major national programmes like the National Optical Fibre Network and the State Wide Area Network.

a) Only 1
b) Only 3
c) 1 & 4
d) Only 4

95. Bank lending to the priority sector grew at what percentagein October 2011 on an annual basis due to lower offtake by agriculture and MSME segments as well as decline in micro credit?

a) 10%
b) 12%
c) 13.7%
d) 8.3%

96. With the inauguration of the first state-of-the-art ATDC-SMART (Skill for Manufacturing Apparels through Research and Training) in Egmore, Chennai, the Ministry of Textiles launched which of the following schemes?

97. Which bank signed a memorandum of understanding with Life Insurance Corporation of India (LIC) to use the National Electronic Funds Transfer (NEFT) facility to facilitate electronic funds transfer of policy payments to policyholders?

a) IDBI
b) Corp Bank
c) Indian Overseas Bank
d) Dhanlaxmi Bank

98. World Aids Day is observed anually on 1 December 2011. What was the theme of World AIDS Day 2011?

a) Getting to Zero
b) Stigma and Discrimination
c) Women & AIDS
d) Force For Change: World AIDS Campaign With Young People

99.

(1) An icon of Indian cinema and evergreen star Dev Anand died at the age of 88 in London on 3 December 2011 (4 December according to IST) after suffering a massive cardiac arrest. Which of the following facts about him is/are not true?

(2) Dev Anand started his career with Prabhat Films' Hum Ek Hain (1946) soon after he joined IPTA

(3) Anand started producing films after the success of Ziddi. He launched his own company Navketan in 1949 which, by 2011, had produced 31 films

(4) His first colour film, Johny Mera Naam with Waheeda Rehman was based on the novel of the same name by R. K. Narayan

(5) The Government of India honoured him with the Padma Bhushan in 2001 and the Dadasaheb Phalke Award in 2002

a) 1 & 4
b) Only 3
c) 2 & 4
d) 1 & 4

100. The Golden Peacock Award for the Best Film was given to which of the following films at the 42nd International Film Festival of India which came to an end at the Kala Academy in Panaji, Goa on 3 December 2011?

Tuesday, 24 January 2012

India’s economic growth rate will remain subdued at 7.7 per cent in 2012 and 7.9 per cent in 2013, says a U.N. report.

“India’s economy is forecast to expand at a pace similar to 2011 in the following two years... at 7.7 per cent in 2012 and 7.9 per cent in 2013,” the U.N. report on ‘World Economic Situation and Prospects 2012’ said.

The report cautioned, “The downside risks to the regional outlook have sharply increased in recent months... particularly in case of India. Double-dip recessions in Europe and the United States would have a significant impact on economic activities across South Asia.”

The government recently lowered the GDP growth target for the current fiscal to 7 per cent from the earlier estimate of 8.5 per cent.

However, the study gave a positive outlook on South Asia’s economic growth prospects and projected that the region’s economies will grow by 6.7 per cent and 6.9 per cent in 2012 and 2013, respectively, accelerating beyond the 6.5 per cent growth rate experienced in 2011.

The report also raised a red flag on India’s fiscal deficit target, saying the Indian government is unlikely to achieve its deficit target of 4.7 per cent of the GDP for 2011-12 as lower growth has brought down tax revenues and disinvestment in state-run companies has been put on hold.

Nevertheless, the study has given a positive outlook for India’s job market, saying, “India is enjoying gains in employment rates.”

With both sides still poles apart on issues of services, procurement policy, duty cuts on automobiles and wines and spirits, India and the European Union (EU) are working hard to put in a place a “political agreement” during the India-EU Summit slated for February 10 as the free trade agreement (FTA) is unlikely to happen.

“There is good news and bad news. The good news is that we are in intense phase of negotiations. The bad news is that we are behind schedule for the India-EU FTA which it is not going to happen before or during the India-EU Summit in New Delhi next month,” EU Delegation Ambassador to India Joao Cravinho told journalists here.

Mr. Cravinho said negotiations were going on this week and that the EU Director General of trade and chief negotiator would be in India next week to hold intense discussions on the various issues. The Trade Commissioner of EU would also be meeting Commerce and Industry Minister Anand Sharma next week in a bid to bring about a consensus on majority of the issues. “But I must caution that no FTA is happening before February 10. We are still away from such an agreement but efforts are being made to arrive at a political agreement on what is likely to form part of the chain of events leading to a FTA,” he said.

Refusing to go into the specifics of the disagreement on the FTA negotiations, he said both sides had reached finality on goods issue. However, there were persisting differences on the issue of services and procurement policy.

Reserve Bank of India here on 24th January 2012 announced the statement on Third quarter Monetary Policy Review, making the markets surprised with unexpected cut in Cash Reserve Ratio(CRR) and it also estimates the GDP growth to be only 7% as against the previous expected 7.6%.

Global growth prospects for 2012 have deteriorated in an environment of increasing concerns over the sovereign debt crisis in the euro area amidst limited monetary and fiscal policy space. Given the weak growth prospects in advanced economies and past monetary tightening undertaken by EDEs to contain inflation, growth in the EDEs has also been moderating. Accordingly, global growth during 2012 is expected to be lower than the International Monetary Fund’s September 2011 projection of 4.0 per cent.

Here are some important points in the Governor's Statement:

Inflation: Although non-oil commodity prices showed some correction in 2011, crude oil prices have remained firm. Supply limitations and continued ultra accommodative monetary policies in major advanced economies pose upside risks to commodity prices in 2012. Currency depreciation in EDEs witnessed in the second half of 2011 and the lagged pass-through to domestic prices could also add to inflationary pressures in EDEs.

Cash Reserve Ratio: It has been decided to: reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 6.0 per cent to 5.5 per cent of their net demand and time liabilities (NDTL) effective the fortnight begining January 28, 2012. As a result of the reduction in the CRR, around `320 billion of primary liquidity will be injected into the banking system.

Repo Rate: The policy repo rate under the liquidity adjustment facility (LAF) has been retained at 8.5 per cent.

Reverse Repo Rate: The reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, stands at 7.5 per cent.

Sunday, 15 January 2012

Fierce competition, innovative strategies and competitive spirit have satiated banks with palpating activities. Banks are adopting different strategies in an environment of increased competitive pressure. Active strategies with focus on new fields of business and defensive strategy concentrating on cost cutting are embraced together. Flawless service delivery is the target with diffused liabilities and multiple choices available to customers.

Technology has completely changed the nature and pace of delivery of banking services world over. The speed has considerably improved alongwith the quality of the services. Various delivery channels are available with banks for customers. Broadly, the levels of banking services offered through internet can be categorized in to three types namely—Basic Level Service, Simple Transactional Websites and Fully Transactional Websites.

Indian banking was provided an opportunity by the liberalization in 1990s to extend its working para-meters beyond geographical borders. The banking reform has indeed helped to restore semblance of efficiency and stability. Our banking industry enjoys greater autonomy, operational flexibility and liberalized norms allowing it to be more com-petitive.

Technology Driven Indian Banking System

The growing universalisation and internationalisation of banking operations have altered the face of banks from one of mere inter-mediator to one of provider of quick, efficient and consumer centric ser-vices. There has been massive use of technology across many areas of banking business in India, both from the asset and the liability side of a bank’s balance sheet.

Banks pass through phases namely the inception phase, where the technology behind the application is in its infancy and a substantial amount of investment is required so as to make the application widely available commercially; the growth phase, where the application is increasingly available to the custo-mers and the technology behind the application is widely available; and the maturity phase, wherein the application is in widespread use and institutions not offering such applica-tions are likely to be at a competitive disadvantage.

The introduction of MICR based cheque processing—a first for the region, during the years 1986-88 was one of the earliest steps in Indian banking on the march of technology.

1. Technological Changes in Indian Banking System

Core Banking Systems—The introduction of Core Banking Systems (CBS) which was at its nascent stages has become full blown and all banks are at varying stages of implementation of Core Banking Systems in their branches. There are 5 ingredients that form part of the Core Banking system viz. General Ledger Customer, Information System, Deposit System, Loan System and Management Information System.

INFINET—INFINET (Indian Financial Network), is used by a large number of banks for funds and non-funds-based message transfers, and is made available by the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad. INFINET is perhaps among the few networks in the world which uses the latest in technology and security called Public Key Infrastructure—PKI, which is not only state-of-the-art and robust but also well within the legal requirements of the Information Technology Act, 2000.

National Electronic Funds Transfer System—RBI introduced an electronic funds transfer system to facilitate an efficient, secure, econo-mical, reliable and expeditious system of funds transfer and clearing in the banking sector throughout India, and to relieve the stress on the existing paper-based funds transfer and clearing system called National Electronic Funds Transfer System (NEFT System).

The parties to a funds transfer under this NEFT System are the sending bank, the sending Service Centre, the NEFT Clearing Centre, the receiving Service Centre and the beneficiary branch. The EFT scheme enables transfer of funds within and across cities and between branches of a bank and across banks.

National Electronic Clearing Services—The objective of National Electronic Clearing Services (NECS) is to facilitate centralised processing for repetitive and bulk payment instructions. Sponsor banks shall submit NECS data at a single centre viz. at Mumbai. While NECS (Credit) shall facilitate multiple credits to beneficiary accounts at destination branch against a single debit of the account of a User with the sponsor bank, the NECS (Debit) shall facilitate multiple debits to destination account holders against single credit to user account.

Centralized Funds Management System—The Centralized Funds Management System (CFMS), is a system to enable operations on current accounts maintained at various offices of the Bank, through standard message formats in a secure manner. It is set up, operated and maintained by the Reserve Bank of India.

Mobile Banking Services—Mobile payments is defined as infor-mation exchange between a bank and its customers for financial transactions through the use of mobile phones. Mobile payment involves debit/credit to a customer’s account’s on the basis of funds transfer instruc-tion received over the mobile phones.

Only Indian Rupee-based dome-stic services shall be provided. Use of mobile banking services for cross border inward and outward transfers is strictly prohibited. Only banks which have implemented core bank-ing solutions would be permitted to provide mobile banking services. Banks shall file Suspicious Trans-action Report (STR) to Financial Intelligence Unit–India (FIU-IND) for mobile banking transactions as in the case of normal banking transactions. To ensure inter-operability between banks, and between their mobile banking service providers, banks shall adopt the message formats like ISO 8583, with suitable modification to address specific needs. Hence, banks offering mobile banking should notify the customers the timeframe and the circumstances in which any stop-payment instructions could be accepted.

2. Current Position of Technological Banking Services

Drift Towards Innovative Banking

1. Presence of Women on Boards

Banking in the West has tradi-tionally been a male bastion and continues to be so. Study titled “Women on Corporate Boards in India 2010” ranked the companies listed in the Bombay Stock Exchange (BSE-100) in terms of the gender diversity of their boards, with those with the highest percentage of women on their boards appearing at the top. The BSE-100 comprises 26 industry classifications with the banking industry making up the largest group of companies.

Indian banks, with better gender equality on board than their western counterparts, scraped though the economic slowdown unscathed.

Kalpana Morparia heads the Indian arm of global financial leviathan J. P. Morgan Chase & Co; Meera Sanyal is the country executive for Royal Bank of Scotland and; Manisha Girotra is the managing director of Union Bank of Switzer-land’s India operations. K. J. Udeshi is the Chairman of Governing Council of BCSBI.

2. Mobile Branches

Domestic scheduled commercial banks (other than RRBs) were granted general permission by RBI, to opera-tionalise Mobile branches in Tier 3 to Tier 6 centres (with population upto 49,999 as per Census 2001) and in rural, semi urban and urban centres in the North Eastern States and Sikkim, subject to reporting.

The mobile branch should be stationed in each village/location for a reasonable time on specified days and specified hours, so that its services could be utilized properly by customers. The business transacted at the mobile branch shall be recorded in the books of the base branch/data centre. The bank may give wide publicity about the mobile branch in the village, including details of ‘specified days and working hours’ at various locations so as to avoid any confusion to local customers; and any change in this regard should also be publicized.

3. Social Responsibility, Sustain-able Development and Non-Financial Reporting

Government infused into bank-ing sector the ‘socialist’ constituent through nationalization of major banks.

CSR entails the integration of social and environmental concerns by companies in their business opera-tions as also in interactions with their stakeholders. SD essentially refers to the process of maintenance of the quality of environmental and social systems in the pursuit of economic development. NFR is basically a system of reporting by organizations on their activities in this context, especially as regards the triple bottom line, that is, the environmental, social and economic accounting.

RBI circular (dated December 20, 2007) on Role of Banks in Cor-porate Social Responsibility, Sustain-able Development and Non-Financial Reporting is appreciable. Stressing the need for Corporate Social Res-ponsibility (CSR), RBI pointed out that these initiatives by the banks are vital for sustainable development. Banks have been directed to start; non-financial reporting will help to audit their initiatives towards the corporate social responsibility (CSR). Such a reporting will cover the work done by the banks towards the social, economic and environmental better-ment of society.

The issue of universal banking came to limelight in 2000, when ICICI gave a presentation to RBI to discuss the time frame and possible options for transforming itself into an univer-sal bank.

Later on RBI asked financial institutions which are interested to convert them into a universal bank, to submit their plans for transition to a universal bank for consideration and further discussions. FIs need to for-mulate a road map for the transition path and strategy for smooth con-version into an universal bank over a specified time frame. The plan should specifically provide for full com-pliance with prudential norms as applicable to banks over the pro-posed period. Though the DFIs would continue to have a special role in the Indian financial System, until the debt market demonstrates substantial improvements in terms of liquidity and depth, any DFI, which wishes to do so, should have the option to transform into bank (which it can exercise), provided the prudential norms as applicable to banks are fully satisfied. To this end, a DFI would need to prepare a transition path in order to fully comply with the regula-tory requirement of a bank. The DFI concerned may consult RBI for such transition arrangements. Reserve Bank will consider such requests on a case by case basis.

Thus, Indian financial structure is slowly evolving towards a conti-nuum of institutions rather than discrete specialization.

Conclusion

The applicability of various existing laws and banking practices to e-banking is not tested and is still evolving, both in India and abroad. With rapid changes in technology and innovation in the field of e-banking, there is a need for constant review of different laws relating to banking and commerce. A re-orientation of strategy is required in order to accommodate the changes and challenges of the present globa-lised scenario.

Technological developments may become threat but still enable banks to access the global market through the electronic networks. IT usage by banks would continue to exist in substantial scales. Indian Banking is trying to embrace latest technology upgrading its services. Clientele are reveling sophisticated services specific needs, preferences and conveniences by the banks.

We all acknowledge the fact that money is essential for sheer existence and survival yet tend to escape from learning how to manage money. Managing money means the ability to judiciously save and multiply the money earned, through an informed understanding of the financial pro-ducts and services available. It is also the question of avoiding risks and being protected from falling prey to unscrupulous elements. In my opinion the single most critical factor in effective money management is to stay away from greed. Greed for making quick money often restricts the power to think and take appro-priate decisions. Greed and lust for easy money overpowers application of mind and the capacity to think sanely. We ignore the fact that money invested legally and ethically can hardly ever give returns which are disproportionate with respect to pre-vailing market conditions. Yet regu-larly we hear of people losing their hard earned money by succumbing to fraudulent schemes which promise attractive returns or trusting someone who tempts them with windfall gains.

We must always remember that money does not grow on trees and investments/savings can fetch only normal returns which are in con-formity with market norms. Our indulgence in fancy schemes and faith in promoters whose credentials are not verified arises due to lack of adequate knowledge and the ability to think rationally. Money lost is difficult to retrieve; though checks and balances are there it is only the well informed who can pursue his case by approaching the respective authorities for redressal. We need to respect money for its value and its significance for sheer survival. Financial literacy is therefore crucial for the well being of an individual from any section of society.

What is Financial Literacy ?

It is not logical to assume that all educated individuals are financially literate and the less educated are weak. In fact the converse could be true. What then is financial literacy? Simply expressed it is the ability to manage one’s personal finance judiciously by making best/optimum use of one’s resources. There are different financial products and ser-vices available which cater to differ-ent needs and requirements. Under-standing these products and services and choosing according to the wants is what constitutes the right approach. These wants differ from individual to individual and even during the life span of a person the wants keep changing. The requirements are linked to the risk taking capacity as the element of safety is crucial in an individual’s life.

Be it savings through bank/post office schemes, investing in stock markets or mutual funds, buying life cover and general insurance, raising loans or use of credit cards it is essen-tial to know the products thoroughly to make a well thought out decision. A prudent man generally relies on his personal judgement rather than dubious relationship managers/un-solicited help as trust and integrity in financial matters are an absolute necessity. It is better to stay away from complex products and services if the knowledge levels are low as safeguarding of money is more impor-tant than taking unwanted risks. With the spread of technology and opening of the economy it has become even more important to select the appro-priate product after due diligence. Though technology has made ser-vices swifter and efficient it has also introduced many hazards. A thorough understanding of the safe-guards in the technology process is all the more essential to avoid being a victim of fraudulent transactions.

To appreciate the significance and relevance of financial literacy for sound money management it may be worthwhile to capture a few illustra-tions.

(1) Taking the simple example of payment of interest on savings bank accounts not many still know that interest is now paid on the daily balance in the account. Rather than withdrawing money which may not be immediately required for a week at least it would be profitable if the same amount remains with the bank as it would continue to earn interest for the account holder. Better still the surplus funds in a savings account could be transferred to a fixed deposit account which would give higher interest.

(2) Those seeking loans from banks often do not read the terms and conditions of the bank and blindly sign the documents thereby agreeing to the terms of the document. At times these papers are signed in blank without even bothering to understand the significance of the loan contract. Loan means having to fulfil many obligations by the bor-rower till it is cleared and pleading ignorance later does not help. In case of default the assets can be seized by the lender and the borrower has no scope to protect the asset without clearing the dues.

(3) Most loan documents require one or more guarantors to sign along with the borrower. This strengthens the lender in case the borrower defaults. How many really know that the guarantor is liable to pay if the borrower does not repay the dues. There are many instances where the guarantors regretted signing the documents and protested when they were asked to clear the loan. Such protests citing ignorance or lack of knowledge are of no use later.

(4) Most credit card holders do not realize that interest on roll over dues are charged abnormally high interest rates and interest gets com-pounded every month if the balance remains unpaid. Moreover service tax is also levied on the interest amount. Higher the interest amount higher the service tax becomes payable.

(5) Non-banking finance com-panies and corporates invite deposits from the public with offer of higher interest rates than most banks. It is quite logical for certain persons to be tempted to invest their funds in these schemes for the additional interest amount. What is of prime importance is to study thoroughly the back-ground and strength of the company before investing as the repayment of the deposit on maturity is not guaran-teed. There are so many examples where the companies have not retur-ned the money on maturity for various reasons. Some have even disappeared from the market after mobilizing substantial money. Ima-gine the poor person of meager means having to suffer the loss of money as he deposited in good faith but without full knowledge.

(6) RBI regularly releases reports of forged or counterfeit currency notes in circulation and the need to be cautious. How many of us really bother to understand the security features of currency notes to identify forged notes and take preventive action. The desired know how can stop the fraudulent use of illegal money and prevent undesirable con-sequences. RBI’s campaign ‘Paisa Bolta Hai’ is an excellent audiovisual presentation on the measures to check the authenticity of a currency note.

(7) For the sake of credit and debit card holders there are regular warnings to avoid sharing their PIN and card numbers with any third person. Despite the constant educa-tion it is often seen that card users are asking total strangers at ATM centres and elsewhere how to operate their cards. The fact that they are inviting trouble is overlooked for the sake of momentary help. Little do we realize that knowledge can prevent many untoward happenings ?

(8) Insurance policies are pur-chased as tax savings schemes rather than the main objective of insuring life. The type of policy is also not properly understood as to the type of risk cover it is providing. Unfor-tunately the insurance agent is at times not fully educated himself or avoids suggesting the right policy for making higher commission payouts.

(9) Insurance policies carry a 15 days or in some cases one month free look period during which time the buyer can reconsider his decision to purchase the life cover. This enables the buyer to study carefully the features of the policy and compare it with his actual need. Very few really know about this facility which again demonstrates the need to be aware and vigilant.

(10) Retail investors enter the stock market hoping to make quick gains. Very few make their own independent studies but merely rely on hearsay. The results are obvious as a few lucky ones may make some money without adequate knowledge but the large majority suffer loses. There is also the ‘ASBA’ facility for subscribing to new issues without blocking one’s funds but very few take advantage of it. SEBI has tried to popularize this facility in many ways through advertisement campaigns and it is for the investor to gain from it. Once again the informed person only benefits.

(11) Investing in mutual funds has also become fashionable because of the coverage the sector gets. Yet it is a matter of debate as to how many can differentiate between equity or debt funds or even hybrid varieties. The investment is not linked to the risk taking capacity of the investor and his financial priorities. Often the investor is not aware whether his holdings in the fund belong to the growth or dividend option.

The above examples relate to very basic transactions but convey the significance of possessing sound knowledge for prudent decision making. Absence of financial literacy can truly damage substantially the interests of the persons concerned. It is difficult to escape for any age group as money is needed by all.

The Spread of Financial Literacy

It is better to start early with the process of financial education as discipline in money matters is an important characteristic of an indivi-dual. Children should be taught the benefits of saving and introducing the age old concepts of having a piggy bank can be a welcome start. Schools need to inculcate these habits in students and gradually introduce them to the basics of personal finance. A beginning has already been made by introducing subjects on basic finance in the school curriculum at certain centres. Reserve Bank of India is promoting this early education of children by adopting a friendly and entertaining way through the medium of comics. They are also encouraging the young to participate in contests, the winners of which are awarded scholarships. It is the vulnerable sections of society like women, senior citizens, the rural and urban poor who need to be adequately educated and equipped. The Financial Literacy programme of RBI is tackling all these issues through different means. Their website is a store house of knowledge provided there is an urge to learn. The individual has to be proactive and be eager to grasp the necessary knowledge to safeguard himself and thereby his money. RBI is making extra efforts to be as trans-parent as possible in the larger interest of the common citizen by reaching out to them through their out reach programmes. These pro-grammes which were held during the 75th year of RBI in 2010 in far corners of the country were primarily to educate the masses about the activi-ties of RBI and how to utilize the available banking services for their betterment.

Most banks also have their finan-cial literacy departments and credit counseling centres where personal problems are addressed. How much of these centres are successes is deba-table because a very small percentage of people know about these facilities and even if they know there is an inherent hesitation to seek their help. The websites of banks and financial institutions also have all the details about their products and services. In case of doubts it is advisable to refer to these portals to avoid making any wrong or improper decision. The concern is that incomplete or half baked knowledge is not used to take decisions which are repented later.

BCSBI or Banking Codes and Standards Board of India has been set up by RBI as an apex body to improve the working of banks and introduce systemic changes wherever necessary for better treatment of customers. While their primary focus remains on customer service they are also par-ticipating in disseminating informa-tion on different aspects of banking. For an effective literacy campaign it is important that information asym-metry between service provider and customer is reduced. In this connec-tion banks have unilaterally under-taken to comply with a Code of Commitment to Customers detailing the nature of services provided by banks, the normal time taken for rendering these services and the various obligations of banks who have signed these codes. Only when there is awareness can the customers use the code to their benefit. It is for the individual to take advantage of the provisions provided there is will-ingness to learn. BCSBI also publishes a quarterly newsletter which is both informative and educative.

The importance of promoting financial literacy and the enormity of the task is being gradually under-stood. This has made many organi-zations enter this field to make their presence felt. Innovative ways have been adopted to keep the literacy efforts simple and user friendly for maximum benefit. Websites, print media and audio visual communi-cations relating to financial education are easily accessible for the average individual to improve his under-standing of the financial market, its products and services.

National dailies, banks, financial institutions, private organisations are individually contributing through easy to understand pamphlets, comic strips, newsletters etc. to reach the consumer covering fundamental issues. Seminars, conferences, inter-active sessions are often arranged to address issues of common concern and dissemination of information.

Spreading of information and awareness is critical for an emerging economy like India. If the vast popu-lation of deprived people is brought into the mainstream it would be of immense benefit both as a social necessity as well as an economic push. The call for financial inclusion in the country has therefore become an immediate priority and is engag-ing the attention of policy makers for effective execution. It would reap dividends only when the targeted people are financial literate. Only then would they be able to make the most appropriate choice of the pro-ducts and services which would improve their position. The vast majority of our people are extremely vulnerable as they depend upon informal sources of finance for meet-ing their needs. Only by empowering them with the adequate knowledge can we hope to improve their lot and that of the economy as a whole. The penetration of banking and insurance services is extremely poor in India and if the coverage is extended by simultaneous spreading of financial literacy it would be a huge progress for overall growth. The formal channels of money transmission has to be introduced for all round benefit as for far too long the poor, gullible people have suffered at the hands of the money lender and his brethren.

The international body Orga-nisation for Economic Development OECD is putting its weight behind RBI in promoting financial literacy in India. There is no running away from this hard fact for which the financial service providers are also being trained to encourage the dissemi-nation of information in as compre-hensive a way as possible. However it is the individual as the consumer who needs to grasp and absorb the knowledge for his betterment and safety.

Money creation through the legi-timate way is hard and painstaking but can be lost in no time if there is improper financial planning. Finan-cial awareness is a critical component in the process of protecting and enlarging the corpus of funds that an individual may have.

Saturday, 14 January 2012

The Finance Ministry will include a special chapter on financing of climate change in the Economic Survey, the Chief Economic Advisor, Mr Kaushik Basu, has said.

“This year we have decided to devote a special chapter on the topic of financing of climate change in the Economic Survey,” Mr Basu said while addressing a UNDP event.

Speaking at the event, the Economic Affairs Secretary, Mr R. Gopalan, said that the climate change issue is posing a challenge for the world.

“The challenges are both environmental and developmental.

Addressing climate change is a challenge for all humanity and it is in our interest that the world community address the issue effectively,” Mr Gopalan said.

He said there is a need to change the way we use natural resources and device new technology to meet the challenges.

As per the 2010-11 Economic Survey, India’s total carbon-di-oxide emissions were about 4 per cent of the global emissions. The survey also showed that it cost India 2.84 per cent of its GDP to adapt to climate change.

Studies show that even with 8-9 per cent GDP growth every year for the next decade, India’s per-capita emissions will be well below developed countries average.

The Reserve Bank of India's (RBI) recently released draft guidelines on the proposed implementation of international norms of capital adequacy (Basel–III) would require Indian banks to mobilise huge sums of capital during the next five years. Under the existing Basel-II norms, the Indian banking industry has to maintain total capital — drawn from a combination of equity and preference shares plus long-term debt, both accorded lower priority to monies belonging to depositors — amounting to 9 per cent of their assets calibrated suitably for riskiness (‘risk-weighted assets' or RWA). While the overall ratio has been retained under the proposed new norms, a minor reshuffle has been attempted between equity/preference stock holders and long-term bond holders in the event of a bank failure, with the former having to contribute an additional one percentage point capital to their existing 6 per cent of the total 9 per cent. Further, equity/preference share holders have to come up with an additional 2.5 percentage points in capital as a buffer for any unforeseen contingencies. That takes the aggregate capital adequacy ratio (CAR) to 11.5 per cent, of which common equity alone would make up 8 per cent. The emphasis is clearly not just on meeting a broadly defined overall CAR of 8 per cent (as it was two decades ago), but also on improving the transparency and quality of the capital base. The implementation period for all these is from January 1, 2013 to March 31, 2017.

The rationale behind fashioning a tighter capital (especially core equity) regulatory regime for banks stems largely from the banking crises that followed the global recession of 2008 and also the ongoing European sovereign debt troubles. These have created renewed concerns over the banking sector's ability to withstand financial shocks and minimise risks of spill-over to the real economy. But implementation will be a huge challenge, with the estimates of fresh capital needed to be raised by all Indian banks ranging anywhere from Rs 1.4 lakh to Rs 3 lakh crore. Given the dominance of public sector banks, it would necessitate large government infusion of funds. Where this money is going to come from, if the Centre would not even be prepared to dilute its stake below 51 per cent, is a huge question mark. This issue came to the fore not too long back, when Moody's downgraded the State Bank of India's credit rating, after its Tier-1 CAR fell below the Government's own 8 per cent prescription.

Related to this is the more immediate problem of rising non-performing assets (NPA) on account of loans to a host of troubled sectors from telecom and airlines to power. As these mount – under pressure from high interest rates and the general economic slowdown – banks would have to find resources to maintain even existing capital adequacy levels. The RBI, under the circumstances, cannot be totally oblivious to concerns over the proposed implementation schedule for Basel-III, which is seen to be rather frontloaded.